05/31/2005

More Like Sleeping Beauty than Goldilocks

Hello:

Just when we think we are back in a Goldilocks economy (not too hot and not too cold), the first quarter U. S. Gross Domestic Product (GDP) is revised upward to 3.5% from 3.1% on trade data. This suggests that the Fed may consider raising short-term interest rates in the near future. This may be uncomfortable to borrowers with adjustable rate mortgages and/or home equity lines of credit.

The good news is that the upward revision of the GDP suggests a healthier than economy. However, the domestic equity markets remain lackluster and appear to be asleep in their trading range. Perhaps the markets, not unlike Sleeping Beauty, are awaiting the kiss of a handsome prince?

Do you have co-workers that would like to receive the weekly e-Update? Please let them know that they can email us, and we will be happy to include them!

Terri G. Millson, CIMC President

Ray Dicius, CSA, GEPC LPL Branch Manager